Auto Credit: Second Chances
Auto credit keeping you down? Are you in the market for a new car, but your credit is less than perfect? Don’t worry. Even if your credit is not what it used to be, there may still be some financing options for you. A 2nd chance car loan may be just what you are looking for. There are a few different places that you can consider to obtain a 2nd chance car loan, and it is important to look into each option carefully.
Commercial Bank Loans and Auto Credit
The first place many people will look for an auto loan is through their own commercial bank. Many banks offer 2nd chance car loans to their clients (and prospective clients) with fair or average credit ratings. The interest rates and fees for bank loans may actually be fairly low, and banks can afford to offer you a pretty lengthy loan life. However, sometimes a person seeking 2nd chance auto credit loan will not qualify for one through a commercial bank due to their credit requirements.
Auto Credit Financing
Dealerships are another great option for a 2nd chance car loan. The dealership is usually extremely willing to work with you in getting your new car financed, since they benefit from selling you the car just as much as you benefit from accepting their finance terms. Dealership car loans may be a little easier to get than commercial bank loans are, and in many cases they just may be your best option. Their credit requirements may be much easier to obtain, and often a dealership will finance your car loan with little or no money for a down payment. Sometimes dealership car loans have shorter lifetimes, which can mean higher payments and higher interest rates, but that is not always the case. Many dealerships even offer an online loan application process on their website. In many cases you can be pre-approved for a 2nd chance car loan before even stepping onto the lot.
Bad Auto Credit Finance Companies
Some people will just not qualify for either commercial bank loans or car dealership loans. For these people, there are a couple other options, such as independent financiers and online lenders. You can often be pre-approved in minutes, even with very bad credit. These companies may offer higher interest rates and fees, but they can still help you get into the new car you want.
Even if your auto credit is not the best, you can still manage to purchase a car with a 2nd chance car loan. There are several options available to you, so do not let your credit hold you back. Do your research into different banks and dealerships, and you should be able to find one that is perfect for you.